---
title: "IHG Stock Falls as Middle East Rooms Slide 19%"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/295568955.md"
description: "IHG stock fell 1.8% as Middle East RevPAR dropped 19% due to regional conflict, overshadowing strong Americas growth. Despite H1 operating profit rising 10% to $665 million and expanding margins, results missed analyst expectations of $673 million. Management maintains full-year guidance, citing the Middle East's small share of inventory. However, shares trade above GF Value estimates, suggesting current growth may not justify the premium valuation."
datetime: "2026-08-11T18:46:13.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/295568955.md)
  - [en](https://longbridge.com/en/news/295568955.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/295568955.md)
generator: "portal-rs"
---

# IHG Stock Falls as Middle East Rooms Slide 19%

InterContinental Hotels Group , the hotel powerhouse behind Holiday Inn and InterContinental, reported higher first-half revenue Tuesday, but the market wanted more. London shares dropped roughly 1.8% in early trading as second-quarter RevPAR growth cooled to 3.5% from 4.4% in the first quarter. The real damage came from the Middle East, where RevPAR sank 19% as the regional conflict hammered travel. That weakness was sharp enough to overshadow another strong quarter in IHG's biggest market.

The Americas did the heavy lifting. Second-quarter RevPAR jumped 5.4%, while Greater China still squeezed out 0.8% growth. Across the first half, global RevPAR climbed 4.1% and operating profit from reportable segments rose 10% to $665 million. Fee margin expanded 1.2 percentage points to 65.9%. And IHG kept building. The group opened 31,500 rooms across 197 hotels and signed another 49,200 rooms, pushing its development pipeline to roughly 348,000 rooms. That pipeline matters: more rooms mean more fees, and more fees can mean more profit without IHG having to own the underlying real estate.

But here is where the story gets interesting. According to Reuters, that $665 million operating profit still missed the roughly $673 million analysts expected. The Middle East represents only about 5% of IHG's global room inventory, so management believes stronger demand elsewhere can swallow the hit and keep full-year expectations intact. IHG is also returning cash, with 42% of its $950 million buyback completed by June 30.

The problem? The stock is no bargain. At $155.99 on Aug. 11, IHG trades 16.47% above its GF Value estimate of $133.93. The business is growing, margins are expanding and the hotel pipeline is loaded. But with the shares already running ahead of GF Value, good growth may no longer be enough. IHG now needs to deliver the numbers to match the price.

### Related Stocks

- [IHG.US](https://longbridge.com/en/quote/IHG.US.md)
- [IHG.UK](https://longbridge.com/en/quote/IHG.UK.md)
- [TRI.US](https://longbridge.com/en/quote/TRI.US.md)

## Related News & Research

- [InterContinental Hotels Discloses Share Sale by Human Resources Chief](https://longbridge.com/en/news/296233410.md)
- [IHG signs three-hotel Vignette Collection deal with Harilela Group for The Hari portfolio](https://longbridge.com/en/news/296049438.md)
- [InterContinental Hotels Group PLC Announces Transaction in Own Shares - August 20 | IHG Stock News](https://longbridge.com/en/news/296442023.md)
- [IHG signs first Hotel Indigo branded residences project at Mountain View Ras El Hekma in Egypt](https://longbridge.com/en/news/296209842.md)
- [Citi Reaffirms Their Sell Rating on InterContinental Hotels (IHG)](https://longbridge.com/en/news/296581681.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**